Question 1

What is an example of an externality?

Accepted Answer

A) the impact of bad weather on the income of farmers 
B) the impact of the personal income tax on a person's ability to purchase goods and services 
C) the impact of pollution from a factory on the health of people in the vicinity of the factory 
D) the impact of increases in health care costs on the health of individuals in society 
A) the impact of bad weather on the income of farmers 
B) the impact of the personal income tax on a person's ability to purchase goods and services 
C) the impact of pollution from a factory on the health of people in the vicinity of the factory 
D) the impact of increases in health care costs on the health of individuals in society

Question 2

Which of the following is consistent with the Phillips curve?

Accepted Answer

A) If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily fall. 
B) If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily rise. 
C) If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently fall. 
D) If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently rise. 
A) If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily fall. 
B) If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily rise. 
C) If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently fall. 
D) If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently rise.

Question 3

What causes almost all variation in living standards in different countries?

Accepted Answer

A) population growth rates 
B) endowments of natural resources 
C) national government budgets 
D) productivity 
A) population growth rates 
B) endowments of natural resources 
C) national government budgets 
D) productivity

Question 4

Suppose your management professor has been offered a corporate job with a 30% pay increase. He has decided to take the job. What happened for him?

Accepted Answer

A) The marginal cost of leaving was greater than the marginal benefit. 
B) The marginal benefit of leaving was greater than the marginal cost. 
C) The marginal benefit of teaching was greater than the marginal cost. 
D) The marginal cost of teaching was greater than the marginal benefit. 
A) The marginal cost of leaving was greater than the marginal benefit. 
B) The marginal benefit of leaving was greater than the marginal cost. 
C) The marginal benefit of teaching was greater than the marginal cost. 
D) The marginal cost of teaching was greater than the marginal benefit.

Question 5

What is a primary function of prices in a market economy?

Accepted Answer

A) to provide participants with economic information 
B) to provide participants with spending limits 
C) to provide participants with accounting capabilities 
D) to provide participants with an equitable distribution of goods 
A) to provide participants with economic information 
B) to provide participants with spending limits 
C) to provide participants with accounting capabilities 
D) to provide participants with an equitable distribution of goods

What is an example of an externality?

Which of the following is consistent with the Phillips curve?

What causes almost all variation in living standards in different countries?

Suppose your management professor has been offered a corporate job with a 30% pay increase. He has decided to take the job. What happened for him?

What is a primary function of prices in a market economy?

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 1: Ten Principles of Economics

What is an example of an externality?

Which of the following is consistent with the Phillips curve?

What causes almost all variation in living standards in different countries?

Suppose your management professor has been offered a corporate job with a 30% pay increase. He has decided to take the job. What happened for him?

What is a primary function of prices in a market economy?

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters